Goldman Sachs Essay Example | Topics and Well Written Essays - 1000 words

Goldman Sachs - Essay Example Goldman Sachs is a global investment banking and securities firm which engage in financial services like investment banking, securities, investment management etc. Founded in 1869 and headquartered in the Lower Manhattan area of New York City, Goldman Sachs has a lot of international offices across the world. Apart from financial services, it provides mergers and acquisitions advice, asset management and prime brokerage to its clients. Its clients include corporations, governments, and individuals. Goldman Sachs has recently caught the attention of the investment world because of the innovative risk management strategies implemented by them. According to J.P. Morgan analysts Kian Abouhossein and Delphine Lee, â€Å"Goldman Sachs' risk management was "best in class" and could act "as a benchmark for investment banking peers† (Kennedy). This paper briefly analyses Goldman Sachs' risk management strategy, its advantages and the risks faced by Goldman Sachs. Goldman Sachs' have used different measures of risk for a long period and the competitors were able to adopt such techniques only recently. In conclusion, Goldman Sachs was able to escape from the recent financial crisis because of their highly innovative risk management strategies. They were able to implement risk management strategies which other may not even think of. When most of the financial institutions struggled to survive because of the recent financial crisis, Goldman Sachs was able to improve its market position because of their well-defined risk management strategies.